S & P Indices has been chosen by the Living Planet Fund Management Company to calculate a green index for Living Planet.
Living Planet is a subsidiary of WWF International, one of the largest environmental organisations in the world.
The index will track the performance of stocks active in green business and will be calculated using an objective, formulae-based proprietary methodology specific to Living Planet which employs a green co-efficient to determine the weightings of the stocks in the index.
S & P Indices will calculate the net total return on a real-time basis under the ticker LPGTE.
Living Planet manages an investment fund that incorporates socially responsible investing criteria in its selection of companies considered as suitable for investment.
Companies within each industrial sector need to meet an acceptable standard on financial and other non-financial criteria, after which the best in class for each sector are considered for investment.
Some industry sectors, such as tobacco and armaments, are excluded altogether.
Marius Baumann, global head of custom index services at S & P Indices, said the index draws on S & P’s strength in producing custom indices for clients, but also on its wider social responsibility index experience.
Chiew Y Chong, managing director at Living Planet, said: “Our fund is committed to socially responsible investment and this new index will help us benchmark our performance.
“S & P Indices has a long track record of providing indices in this area and so was the natural choice for us.”
